Allianz Capital Partners

Infrastructure

Investing in infrastructure

Since the establishment of a dedicated Infrastructure team in 2007, we have gradually increased our portfolio to eight investments in Europe and one in the US. Our portfolio is well diversified across the energy and transport sectors.

Investment strategy

Given our very long-term investment horizon we seek returns for Allianz through cash yield and not through exits. As a long-term, buy-and-hold investor, we focus on investments that provide stable, preferably inflation-linked, cash flows over the long term. We invest in assets that provide essential services to the public and are supported by regulated or contracted revenues or a strong market position. While we primarily focus on brownfield assets with an operational track record, we can also consider greenfield projects on a selective basis. We take construction risk under appropriate contractual or regulatory protection but no development risk.

As part of a leading international insurance company, we pursue investment opportunities globally, focusing on countries with a well-established fiscal and regulatory track record. Our focus lies on developed countries, but we are selectively also considering emerging markets.

We seek significant minority or joint control equity stakes of up to 50% and typically partner with like-minded, reputable investors to acquire controlling equity stakes of up to 100%. We look for strong financial and industrial partners as well as a clear alignment of interest between the partners. Furthermore, we are an active investor, focusing on professional oversight but without involvement in the day-to-day management of the businesses we acquire.

Expertise

Formed over several years, the investment team benefits from a diverse skill-set and cultural background coupled with long-term investment experience. The team is based in London and Munich. It works seamlessly together on transactions across the globe and is supported by a network of dedicated senior advisors and the global Allianz network. The entire team has a strong network consisting of industrial companies, politics, regulators and other infrastructure investors.

Portfolio

Affinity Water

Affinity Water Limited (“Affinity Water”) is the United Kingdom’s largest water-only supply company by revenue and population served. Together with operating 98 water treatment works, they supply, on average, 900 million liters of water a day to over 3.6 million people, serving 1.5 million homes and businesses in the southeast of England. Affinity Water operates under a well-established and transparent regulatory framework.

Cadent

Cadent (former National Grid Gas Distribution) is the largest distributor of gas in the UK, delivering gas to approximately half of the country’s connected households. It owns and operates more than 130,000 km of pipelines across four regional networks in the East of England, North London, North West and West Midlands. Cadent operates under a well-established regulatory framework developed by Ofgem, the UK’s gas and electricity regulator. As the largest gas distribution company in the UK, serving approximately 11 million households and businesses, Cadent represents essential infrastructure for the UK’s energy supply.

Delgaz Grid

Delgaz Grid (former E.ON Distribuţie România) owns and operates a gas distribution pipeline system of over 20,000 km as well as an electricity distribution grid of over 80,000 km. It is serving about 3 million customers and is a core infrastructure asset in Romania operating under a well-established regulatory framework.

Gas Connect Austria (GCA)

Gas Connect Austria (GCA) owns and operates critical gas infrastructure for the transport of natural gas to and from Austria with an approximately 900-km-long natural gas high-pressure pipeline grid. Besides the marketing of natural gas transport capacity, the company maintains the smooth and reliable operation of a modern, high-performance network. Due to its central geographic location and well-connected pipeline network GCA is a major turntable and central hub for the transmission of natural gas in Europe. GCA plays a key role in the natural gas supply for Austria and neighboring countries including Germany, France, Hungary, Slovakia, Slovenia and Croatia.

Tank & Rast

Tank & Rast is Germany's largest and leading owner and concessionaire of a network of motorway service areas providing essential services to 500 million visitors each year. The Tank & Rast network comprises around 390 service areas, approximately 350 petrol stations and some 50 hotels on Germany's highway network. ACP and its consortium partners are committed to support Tank & Rast's strategy in continuing the improvement of the product and service offering along the German motorways including the nationwide roll-out of e-charging facilities.

Thames Tideway Tunnel

The Thames Tideway Tunnel is a newly constructed, 25km-long sewage system running through central London. In 2015 ACP and our consortium partners received the license to own and finance London's Thames Tideway Tunnel, which is required to tackle a significant environmental problem – the discharge of untreated sewage into the tidal River Thames. The new transfer and storage tunnel will significantly increase the capacity in the London sewerage network and will create a cleaner, healthier River for Londoners.

Queenspoint

ACP acquired interests in three concession assets, two granted in connection with the Metro Line 9 in Barcelona and one in connection with the Metro Ligero Oeste commuter rail line in Madrid. All assets are fully operational and granted under long-term concessions with a remaining weighted average life of 26 years. These three concessions are essential to the mobility plans of both Madrid and Barcelona, increasing public transportation options for citizens and commuters in previously underserved areas.

Location: Spain

Investment Year: 2015

Consortium Ownership stake: 36.5% in two series of stations on Line 9 of the Barcelona metro system; 18.7% in Metro Ligero Oeste - a light railway line in Madrid; both owned jointly with consortium partners

Colchester Garrison

Colchester Garrison is a major garrison located in Essex, Southern England. We have a 35 year concession to design, build, finance and operate the new Garrison facility at for the UK Ministry of Defence. Today, the Garrison provides fully serviced accommodation, training, education and welfare facilities for the 3,500 military and 700 civilian personnel who live and work at the Garrison.As the home of the 16 Air Assault Brigade, the British Army's rapid reaction force, Colchester Garrison provides an important service to a critical part of the UK's military capability.

Porterbrook

Porterbrook is one of the three major rolling stock leasing companies in the UK. It owns a diverse portfolio of passenger and freight rolling stock and leases this stock to train and freight operating companies in the UK under long-term lease agreements. It manages a modern fleet of approximately 5900 passenger and freight vehicles and its portfolio represents approximately one third of Britain's passenger rolling stock fleet. Porterbrook's trains fulfil a critical public service function for commuters and travelers in the UK and are a vital part of the UK's infrastructure.

NET4GAS

NET4GAS is the sole owner and operator of the gas transmission system in the Czech Republic. NET4GAS operates more than 3800 km of high-pressure pipelines that supply the Czech domestic market and transit natural gas through the Czech Republic to markets in Central and Western Europe. The NET4GAS network represents essential infrastructure for the transport and supply of gas to all Czech domestic customers. Through interconnections to neighboring countries and fully reversible network NET4GAS helps to increase energy security not just in the Czech Republic but for the whole CEE region.

Gassled

Gassled owns the bulk of the natural gas pipeline infrastructure on the Norwegian Continental Shelf. It includes approximately 8000km of natural gas pipelines to process, transport, and export to mainland Europe and the U.K. Gassled is a strategic asset in the Northwestern Europe energy landscape, which operates under a long term license until December 2028. As the owner of the vast majority of the gas transportation infrastructure between Norway and the rest of Europe, Gassled is vital in ensuring security and diversity of gas supply to the UK and Continental Europe. Allianz is invested in Gassled through Silex Gas Norway and Solveig Gas Norway.

Chicago Parking Meters (CPM)

CPM operates all of the on-street metered parking in Chicago pursuant to a 75-year concession. The concession grants CPM an exclusive right to operate, manage, maintain, rehabilitate and collect revenues derived from approximately 36,000 parking spaces located throughout Chicago. Since the start of the concession in 2009, CPM has made significant investments in system modernization and customer service improvements, which has resulted in one of the most sophisticated parking systems in the country.

CPPIB and Allianz are anchor investors in the first private infrastructure investment trust in India, sponsored by L&T Infrastructure Development Projects Ltd. Combined, CPPIB and Allianz will acquire 55% of the units in the trust. Trust will focus on development of toll roads and road infrastructure in India.